Could publishing group Pearson sell the FT Group to Bloomberg for £1.5bn? That is the theory being suggested today by analysts at Execution.

The broker said such a move would seem to fit Bloomberg's strategy and would give Pearson firepower for further expansion. However the idea of selling the FT is not a new one, and there has never been much sign Pearson was keen on such a move. One possible acquisition target if the deal does happen could be Spanish publishing group Santillana, although again Pearson recently played down speculation that it was interested in such a move. Even so, Execution analyst Giasone Salati said in a buy note today:

Bloomberg recently announced that it was adding 950 new staff to expand its news and technology operations and that it was 'open-minded' about acquisitions, a radical change from the company's track record. A bid for the FT Group would fit the new strategy, in our view.

Under this scenario, Bloomberg would be able to enter the datafeed and mid/back office segments - IDC [Pearson's 62%-owned provider of specialist financial data to financial institutions and retail investors] - while boosting its editorial operations and consumer exposure (FT Publishing).

On the other hand, the potential disposal of the FT Group would free the resources necessary for further expansion (e.g. Santillana, as widely reported in the press). On our estimates, the FT Group accounts for 12% of Pearson sum-of-the-parts and is worth up to £1.5bn, based on transaction multiples of 10.6 times EBITA 2010, over 10% upside on the Pearson's current market capitalisation.

Overall Execution said it expected resilient growth from Pearson's education division. It said:

The migration to online and the political support to education in the current recession make Pearson its highest conviction buy for the short and long term.

The broker has raised its price target to 950p from 870p, and in the market Pearson is steady at 891p.